DETROIT -- Nearly $10 million from a state settlement with mortgage lender Countrywide Financial Corp. will go to about 3,700 borrowers who lost their homes to foreclosure, Michigan Attorney General Mike Cox announced Tuesday.

Cox said at a news conference in Detroit that he and six other state attorneys general negotiated settlements with Countrywide.

He said 3,697 people with sub-prime and pay-option adjustable rate mortgages between Jan. 1, 2004 and Dec. 31, 2008 who later lost their home each will receive $1,800. The $6.7 million makes up two-thirds of the settlement with Countrywide.

The state worked with Bank of America Corp., which now owns Countrywide, to identify the borrowers for the payments.

A message was left for a Bank of America spokeswoman Tuesday afternoon.

The settlement also includes $1.2 million to the United Way of Southeastern Michigan to help pay for its family crisis telephone line and grants of $250,000 each for the city of Detroit and nonprofit Focus: HOPE to help neighborhoods with abandoned and distressed homes. More housing-related grants for communities and charities are expected to be announced soon.

The United Way is working with city and state officials on holding several Avoid Foreclosure Forums around Michigan, including an April 28 event at Ford Field.

Tuesday's announcement was part of a larger settlement disclosed in October between Countrywide and several states alleging unfair and deceptive loan practices.

Bank of America said in October it would modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 customers of Countrywide.

Countrywide agreed to pay $130 million to renegotiate about 10,000 loans in Michigan in addition to the $9.9 million in payments and grant money detailed Tuesday.